Report: Russia to Freeze Gasoline Prices

The Associated Press ^ | Sep 19 1:43 PM US/Eastern | The AP

[.cnI redruM]

Russia's major oil producers agreed Monday to freeze their gasoline prices in the country until the end of the year, the Interfax news agency said, citing the Industry and Energy Ministry.

The oil companies made the decision at a meeting with Industry and Energy Minister Viktor Khristenko, Interfax quoted ministry spokesman Stas Naumov as saying. The ministry could not immediately be contacted Monday.

"The result of the meeting was a voluntary decision by the management of Russia's largest companies; prices won't rise any further on the domestic market until the end of the year," the official said, according to Interfax.

Surging oil prices worldwide have boosted the cost of gasoline in Russia, the world's second-largest oil exporter after Saudi Arabia, provoking criticism from Kremlin-loyal politicians. Gas prices rose by a ruble in the space of a week as of Tuesday, to 18 rubles ($0.63) per liter (0.26 gallon).

The biggest Russian crude oil producer, Lukoil, announced a unilateral cap on gasoline prices Monday with immediate effect. Another major oil company, TNK-BP, which is a 50-percent joint venture with British oil giant BP, declined to confirm the price freeze, but said it would make an announcement Tuesday.

"We support the government's efforts to ease up tensions on the fuel market," TNK-BP spokeswoman Marina Dracheva told The Associated Press.

In a statement, Lukoil blamed high mineral-resource taxes that are pegged to world prices, as well as under-investment in domestic refineries.

[Malsua]

Bzzzt.... Thanks for playing. Unless the Russian government refuses to let the Russian oil companies export, they will simply sell the oil elsewhere in order to maximize their return on the production cost.

You didn't even read my post. Russia's Central Gov't is already setting export standards and Putin is expanding control so as to manipulate global pricing on oil.

Russian Oil companies won't have the opportunity to sell their oil elsewhere. It won't affect local supply and demand. You're just wrong, you simply can't admit it. There will be no shortages in Russia as Local Supply will be adjusted to fill demand. It's that simple and you'll come back with another not-so-witty reply. http://www.ameinfo.com/35292.html

[MediaMole]

They use a different Octane measuring standard. The numbers are different.

Our 87 octane is the same as European 91 octane, so 93 octane is really just like 89 octane in the US.

89 octane was the standard until unleaded gas was introduced.

[.cnI redruM]

I refer you post # 36. I'll also remind you how effective our government is in controlling the product supply to economically profitable markets. Take heroin for example...

[righttackle44]

This is going to be fun watching the Russian politicians and decision makers running in front of the mobs who are firing low and steady, when the people can't get heating oil or gasoline this winter.

[nairBResal]

The BIG question is If Russia is a MAJOR WORLD EXPORTER of the black gold, (i.e OIL SELF SUFFICIENT) why are their citizens paying so much for gasoline????????

[Tailgunner Joe]

"They took our jobs!" "Down with obscene profits!" "People against the powerful!"

[.cnI redruM]

It won't be fun fighting Al Quaida guerrillas who are funding their militias via illicit petrol sales to people inside Russia.

[.cnI redruM]

Because the larger consumers in a market set the prices. Take a look at what happened to the prices of health care and university educations in the US when the government became a major payer in each market.

[Tailgunner Joe]

Yes, just don't let them export as much! All the problems caused by central planning can be solved by more central planning!"

Down with capitalism! Hang the greedy running dogs from the lampposts!

[jb6]

PRICE CONTROLS: Taking care of Russia's own needs first!

Considering its the Russian's own oil and gas, they do with it what they want. Minding your own business is something you neocons are not capable of.

[jb6]

Union thug? That's about as groundless as your anti-semitism accusations from a few months ago. Gads, the pajama commando strikes again.

[jb6]

More socialism will always solve all the problems caused by socialism!

Which is why you spent 6 hours last night defending Tymoshenko's socialism. What ever.

[Tailgunner Joe]

Like you mind the business of the people of Ukraine? What did you say about their export and price controls again?

Oh yes, you condemned them as socialist! Just not when Pooty does it though, right? What a hypocrite.

[KevinDavis]

True conservatives should never advocate price control..

[jb6]

The oil companies are required by law to fill national demand first. The only screaming crowds might be here in the US when the natural gas costs go up another 25% just like the past 3 years.

What this will do is keep inflation down, which is at 11%.

[jb6]

Because the government released prices to follow world trends as part of their WTO negotiations and prices predictably went to match those of the US and Europe, sparking an upsurge in inflation.

[jb6]

Yet the policies you support are the very ones driving our jobs and wealth to China. Can't have it both ways, no matter how much you try.

[Tailgunner Joe]

One can't conduct free trade with a communist regime. I'm sorry you feel differently.

It's too bad your protectionism has led you to reject the free market principles of Adam Smith which made the USA the greatest country in the world.

[KevinDavis]

I'm going to say this again.. Can't called be a conservative and yet advocate price controls..

[OXENinFLA]

I give the dem/libs half a day before they're calling for this in the US.

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PING...